Paying Plan Expenses - Castle Rock Investment Company

This is a good time to review which expenses may be paid by plan assets.

Administrative Fees may be paid by plan assets:

Form 5500 preparation (including audit)
Mandatory amendment fees
IRS determination letters
Plan testing
Document maintenance fees
Distributions fees
Loan origination fees

Settlor Fees may not be paid by plan assets:

Plan establishment (document drafting)
Discretionary amendment fees
Plan termination
Ordinary business expenses
Correction program fees (preparation, submission, or penalty fees)

Remember that ongoing investment consulting fees may be paid by plan assets. Please review the six hypothetical fact patterns detailed at www.dol.gov/ebsa/regs/AOs/settlor_guidance.html for more information.